After your salary and business expenses, the remaining business profits can usually be paid out to yourself and any other shareholders as distributions. These are typically taxed as ordinary income and therefore are not subject to self-employment taxes.
On a recurring basis, you can pay out these distributions to your personal bank account.
1. View your Profit & Loss report in the Reports tab to understand your business profit.
2. Make a transfer to an external bank account or debit card, in order to pay out some or all of those profits as distributions.
3. In the Activity section, make sure to add the “Owner’s Pay” expense category to any distribution payments made. Note that this will not be included in your reporting of net profit.
Learn more: How do I pay myself with Found?
Note: Typically, you do not need to pay yourself distributions on a particular schedule. You can make these withdrawals from Found to a personal bank account at any time, as long as you have sufficient funds left over after your salary and business expenses.
Make sure to check out our guide on how to get the most out of Found as an S-Corp.
